AAC Adds Addiction Treatment in New England

AAC Adds Addiction Treatment in New England

AAC Holdings, Inc. (NYSE: AAC), operator of American Addiction Centers, announced its first acquisition of 2017. The company is ramping up again after a hot streak in 2015, when it acquired seven companies for a combined $143 million. Since then, the once-serial acquirer has been quiet on the M&A front as it integrated all its new businesses. It resurfaced briefly in April 2016, when it purchased a sober living facility in Texas for $5 million. Then, on September 13, AAC announced its biggest deal to date. The target, AdCare, Inc., provides addiction treatment in New England. It operates a 114-bed hospital for substance abuse treatment and five outpatient centers in Massachusetts, as... Read More »

MedEquities Trust Enters the Behavioral Health Sector

Real estate investment trusts (REITs) are back in action in the Behavioral Health Care sector. Last April we reported on Care Capital Properties (NYSE: CCP) $380 million deal for six inpatient facilities owned by Signature Healthcare Services LLC (dba Aurora Behavioral Health). Early in August, MedEquities Realty Trust (NYSE: MRT) made its first move into the sector. On August 7, MedEquities announced a definitive agreement to acquire four behavioral health and substance abuse treatment facilities from subsidiaries of AAC Holdings, Inc. (NYSE: AAC), aka American Addiction Centers, for $25 million. Brentwood, Tennessee-based AAC operates 12 residential substance abuse treatment facilities,... Read More »

American Addiction Centers Adds Property

American Addiction Centers, part of AAC Holdings, Inc. (NYSE: AAC), is expanding its Greenhouse operations in Arlington, Texas. The company actually bought a 100-room Econo Lodge and Suites Six Flags, located less than three miles from its 130-bed Greenhouse residential facility and its new outpatient center. The price was $5.35 million. AAC expects the 100-room sober living property to generate approximately $5 million in incremental revenue and approximately $2 million in incremental adjusted EBITDA for its Greenhouse outpatient center in 2017. Read More »

Behavioral Health Care M&A in 2015

It’s only mid-September, but the number of behavioral health care transactions is approaching last year’s total—and is likely to surpass it. Through September 11, we’ve recorded 21 deals in this sector, compared with 2014’s total of 22, which was the highest number of deals since 2006’s total of 24 transactions. American Addiction Centers (NYSE: AAC) and Acadia Healthcare Company (NASDAQ: ACHC) made four deals apiece, and six private equity firms, including Flexpoint Ford, Kohlberg and Company and Revelstoke Capital Partners, made one acquisition apiece. YearTotal DealsTotal Dollars 2015*21$474 million 201422$2.2 billion 201318$136 million 201217$1.0 billion 201114$314 million * through... Read More »

American Addiction Centers Keeps Growing

Acadia Healthcare Company (NASDAQ: ACHC), a serial acquirer in the behavioral health care space, is getting some competition. American Addiction Centers, a subsidiary of AAC Holdings, Inc. (NYSE: AAC) announced its sixth acquisition in 2015, following its IPO in October 2014. The most recent acquisition was for The Oxford Centre, Inc., a 76-bed residential facility in Tupelo, Mississippi, for $35 million. According AAC, the center generated revenue of approximately $12.2 million and adjusted EBITDA of approximately $5.6 million for the year ended December 31, 2014. So far this year, Acadia Healthcare has announced just one acquisition, but then, it is still digesting some larger... Read More »